|Title:||Economic Impact of Information Technology in Firms with Different Ownership Structures|
|Published in:||Academy of Management Proceedings|
|Abstract:||This study seeks to extend the understanding of research in business value of Information Technology (IT) domain by investigating the role of ownership structure in economic impact of IT following contingency theory perspective. The study is set in India and focuses on three ownership types: state-owned enterprises (SOEs), privately-owned enterprises (POEs), and foreign-invested enterprises (FIEs). Using the data of 459 firms in India from 2007 to 2010, this paper employs the structural equation modeling based path analysis to study the moderating effect of ownership structure on the relationships between IT investment and operating expenses as well as IT investment and profit. The empirical results show that IT investments enable firms in reducing their operating expenses, without contingencies related to ownership structure. However, impact of IT investment in improving profit is contingent on ownership structure such that the impact decreases for POEs, FIEs, and SOEs in that particular order.|
|Citation:||Academy of Management Proceedings (2014), (): -|
|Appears in Collections:||Journal Publications [MS]|
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